MTS, Inc. Completes New Loan Agreement

Company Concentrates On Profitability And Sustained Growth



Apr 30, 2001, 01:00 ET from Tower Records/MTS, Inc.

    SACRAMENTO, Calif., April 30 /PRNewswire/ -- MTS, Inc. dba Tower Records,
 the world's largest independent retailer of packaged entertainment announces
 the extension of its credit facility for 12 months and the company's
 commitment to carefully planned growth and improved performance and
 profitability.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/19990915/TOWERRECORDS )
     Led by Chase Manhattan, with an existing group of 11 participating banks,
 a $225 million credit facility has been formally extended for the period of
 one year, enabling Tower to finance and maintain existing operations and
 accelerate its plan to reduce working capital, improve cash flow and maneuver
 company strategies for sustained growth.
     Tower Records' Corporate Treasurer and VP of Finance, Jim Bain said, "In
 the current challenging economic environment, we are pleased to have the
 continued support of our banking group, which we believe is an endorsement of
 our new company strategy."
     President and CEO for Tower Records, Michael Solomon agreed, "During the
 last year we have taken stock and restructured; closing under performing
 stores and successfully addressing inefficient business practices. We have
 already set a strategy in motion designed to streamline our operations and
 increase our overall profitability. We are enhancing our corporate data and
 inventory management systems in order to make more informed decisions and
 improve our customer selection, inventory turns and profit margins."
     Tower Records has long been recognized and respected throughout the world
 for its unique brand of retailing. Founded in 1960 in Sacramento, CA, the
 company's phenomenal expansion over four decades has brought the Tower name
 and retail philosophy to 18 countries globally.
     Tower Records owns and operates 181 stores worldwide with 62 franchise
 operations in 7 countries. The organization opened one of the first Internet
 music stores on America Online in June 1995 and followed year later with the
 launch of TowerRecords.com in November 1996. Tower relaunched its website in
 August 2000 with an emphasis on search, selection, simplicity and service.
 Tower now works with many partners including, Net Perceptions, Liquid Audio
 Inc., Flooz, AOL, Yahoo!, Student Advantage and many others. Tower Records
 maintains its commitment to providing the deepest selection of packaged
 entertainment in the world.
     Forward-looking statements in this release, if any, are made under the
 safe harbor provisions of the Private Securities Litigation Reform Act of
 1995. Certain important factors cause results to differ materially from those
 anticipated by the forward-looking statements, including the impact of
 changing economic or business conditions, other risk factors inherent in the
 entertainment industry, and other factors discussed from time to time in
 reports filed by the company with the Securities & Exchange Commission.
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X99343146
 
 

SOURCE Tower Records/MTS, Inc.
    SACRAMENTO, Calif., April 30 /PRNewswire/ -- MTS, Inc. dba Tower Records,
 the world's largest independent retailer of packaged entertainment announces
 the extension of its credit facility for 12 months and the company's
 commitment to carefully planned growth and improved performance and
 profitability.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/19990915/TOWERRECORDS )
     Led by Chase Manhattan, with an existing group of 11 participating banks,
 a $225 million credit facility has been formally extended for the period of
 one year, enabling Tower to finance and maintain existing operations and
 accelerate its plan to reduce working capital, improve cash flow and maneuver
 company strategies for sustained growth.
     Tower Records' Corporate Treasurer and VP of Finance, Jim Bain said, "In
 the current challenging economic environment, we are pleased to have the
 continued support of our banking group, which we believe is an endorsement of
 our new company strategy."
     President and CEO for Tower Records, Michael Solomon agreed, "During the
 last year we have taken stock and restructured; closing under performing
 stores and successfully addressing inefficient business practices. We have
 already set a strategy in motion designed to streamline our operations and
 increase our overall profitability. We are enhancing our corporate data and
 inventory management systems in order to make more informed decisions and
 improve our customer selection, inventory turns and profit margins."
     Tower Records has long been recognized and respected throughout the world
 for its unique brand of retailing. Founded in 1960 in Sacramento, CA, the
 company's phenomenal expansion over four decades has brought the Tower name
 and retail philosophy to 18 countries globally.
     Tower Records owns and operates 181 stores worldwide with 62 franchise
 operations in 7 countries. The organization opened one of the first Internet
 music stores on America Online in June 1995 and followed year later with the
 launch of TowerRecords.com in November 1996. Tower relaunched its website in
 August 2000 with an emphasis on search, selection, simplicity and service.
 Tower now works with many partners including, Net Perceptions, Liquid Audio
 Inc., Flooz, AOL, Yahoo!, Student Advantage and many others. Tower Records
 maintains its commitment to providing the deepest selection of packaged
 entertainment in the world.
     Forward-looking statements in this release, if any, are made under the
 safe harbor provisions of the Private Securities Litigation Reform Act of
 1995. Certain important factors cause results to differ materially from those
 anticipated by the forward-looking statements, including the impact of
 changing economic or business conditions, other risk factors inherent in the
 entertainment industry, and other factors discussed from time to time in
 reports filed by the company with the Securities & Exchange Commission.
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X99343146
 
 SOURCE  Tower Records/MTS, Inc.